The role of a modern Revenue Manager
The role of a revenue manager in a hotel is generally of a hub. Hub of information, the hub of decision making that surrounds the operations of a hotel, sales team etc. The manager should have skills like excellent communication and should be someone who can explain at a higher level, why the rational decisions he makes are being made around, taking a certain piece of business, or steering the hotel towards a particular direction.
How tech has evolved the role of a revenue manager?
In the past, data gauging took a lot of time. There was a lot of report creation which had to be analyzed thoroughly to make a certain decision, but now with so much data available all around, it is not practically impossible for a human to constantly gauge that data and give a perfect suggestion/result. So, all of this can be done with the help of technology.
Gone are the days when you need to number crunch day in and day out. That's not your prime responsibility now. Your prime responsibility is to be able to go and have a look at the pre-compiled figures and
Understand the opportunity, Communicate to the team, Implement the initiation, Monitor the result.
So, now we understand that the area of revenue management is not just simple demand forecasting and pricing. It has moved into an art where one can understand big chunks of data and how to optimize that- to maximise revenue for your hotel. It has truly morphed into a skill where we are not just looking into optimizing a single reservation- but we are looking, understanding and optimizing the total customer value. Now the technology with artificial intelligence and analytics allows us to look at total customer lifetime.
Nowadays due to the technology distribution landscape, pricing has become much more dynamic and in some ways more challenging as well, but ultimately in the past five years, revenue management and price automation products have helped revenue managers in terms of being able to go and analyze- as well as adjust prices in real time based on several variables like inventory, time, competition, etc.
Nowadays, there is a big opportunity for outsourcing revenue management for our hotels. We are in an opinion that we hoteliers are champions of a lot but masses of none. Being in the hotel industry, we can do a lot of things but not all. So, revenue management products can be outsourced and an additional income can be generated out of it. Several revenue management and price automation products available in the market are a great choice where we can smartly outsource revenue management and lay off a lot of burden from our shoulders.
Everyone always talk about the revenue/revenue management but the key here is profit. We think that there is going to be an evolution when we go away from calling it revenue management to calling it profit optimization, because revenue management has the sense that it is only looking at revenue, and it only talks in terms of room revenue, but when we start looking at food and beverage, function space, spa, and other amenities, those have different profits and help bring in much more profits.
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